The parcel delivery sector experienced a remarkable rise in volumes in 2023, but challenges remain.
- Parcel volumes soared by 8.3%, reaching 3.9 billion items, marking a recovery after previous declines.
- Despite the increase, over two-thirds of customers faced delivery issues, affecting satisfaction scores.
- Next-day delivery remains popular, yet its market share has slightly decreased while other delivery times gained ground.
- International parcel dynamics shifted, with inbound volumes surging significantly compared to outbound trends.
Following a significant dip in previous years, the parcel delivery sector has witnessed a noteworthy recovery in 2023 with volumes increasing by 8.3%, totalling 3.9 billion items. This improvement signals a rebound for the industry, yet the rise in volumes did not address underlying service issues as many customers continued to report delivery problems.
According to the latest Ofcom report, customer satisfaction varied greatly in 2023, with Amazon achieving a leading satisfaction score of 56%, while Evri languished at the bottom with just 32%. A large majority of parcel recipients, approximately 67%, experienced issues such as delayed deliveries or parcels left inappropriately.
The domestic parcel market showed a preference for next-day delivery services, which retained a 65% share despite a slight decline. Meanwhile, services offering delivery after the next day increased their share to over 31%, indicating changing consumer preferences.
Financially, the sector experienced a 3.7% decline in parcel revenue on a real-term basis, which was a smaller reduction compared to the previous year’s sharp 14.3% drop. International parcel volumes painted a mixed picture; inbound volumes surged by nearly 50%, suggesting increased imports, primarily from China, while outbound volumes continued to fall, impacting revenues.
Overall satisfaction with parcel operators revealed mixed results. Despite nearly 78% of consumers being satisfied, the occurrence of delivery issues remained high. Notably, Amazon and DHL were among the top performers, whereas companies like Evri and Yodel fell short in addressing customer complaints effectively.
The continuing challenges in delivery services highlight the need for improvements despite the sector’s recovery.
